Eagle Bulk Shipping Inc (EGLE) Reports Q3 2023 Earnings: Net Loss of $5. ...
Eagle Bulk Shipping Inc (NYSE:EGLE) reported a net loss of $5.2 million for Q3 2023, compared to a net income of $77.2 million in the same quarter of 2022.
The company generated revenues of $82.6 million, a significant decrease from $185.3 million in Q3 2022.
EGLE declared a quarterly dividend of $0.10 per share for Q3 2023, payable on November 22, 2023.
The company completed the sale of the Sankaty Eagle, a non-core, non-scrubber-fitted Supramax bulk carrier.
On November 2, 2023, Eagle Bulk Shipping Inc (NYSE:EGLE), a leading owner-operator within the midsize drybulk vessel segment, released its financial results for the quarter ended September 30, 2023. The company's performance reflects the broader industry's challenges, yet EGLE managed to outperform the Baltic Supramax Index by 14%, achieving a net Time Charter Equivalent (TCE) of $11,482.
Financial Highlights
EGLE reported a net loss of $5.2 million or $0.55 per basic share for Q3 2023, compared to a net income of $77.2 million in the same quarter of 2022. The adjusted net loss was $2.9 million or $0.31 per basic share. The company generated revenues of $82.6 million, a significant decrease from $185.3 million in Q3 2022, primarily due to lower rates on both time and voyage charters, driven by a decline in the drybulk market.
The company also reported an adjusted EBITDA of $15.6 million and completed the sale of the Sankaty Eagle, a non-core, non-scrubber-fitted Supramax bulk carrier. Furthermore, EGLE declared a quarterly dividend of $0.10 per share for Q3 2023, payable on November 22, 2023, to shareholders of record at the close of business on November 14, 2023.
CEO's Commentary
Although our financial results for the third quarter are reflective of the headwinds faced by the broader industry, we were able to once again outperform the BSI (Baltic Supramax Index) by 14%, achieving a net TCE of $11,482. We remain positive about the medium-term prospects for the drybulk industry, particularly given strong supply side fundamentals, macroeconomic risks notwithstanding. With a fully modern fleet of 52, predominately scrubber-fitted vessels, and approximately $170 million in total liquidity, Eagle is well-positioned to continue to take advantage of opportunities for the benefit of our stakeholders. - Gary Vogel, CEO of Eagle Bulk Shipping Inc.
Financial Tables Summary
The company's fleet operating data showed an ownership of 4,808 days for Q3 2023, slightly lower than 4,831 days in Q3 2022. The owned available days were 4,708 for Q3 2023, compared to 4,588 for Q3 2022. The company's owned fleet totals 52 vessels (96% scrubber-fitted) with an average age of 10.0 years.
EGLE's liquidity and capital resources for the nine months ended September 30, 2023, showed net cash provided by operating activities of $35.9 million, compared to $242.5 million for the same period in 2022. The decrease is primarily due to a decrease in net income driven by lower freight rates. As of September 30, 2023, cash and cash equivalents including noncurrent restricted cash was $116.5 million compared to $189.8 million as of December 31, 2022.
Outlook
Despite the challenges faced in Q3 2023, EGLE remains positive about the medium-term prospects for the drybulk industry. The company's focus on operational efficiencies and improvements, along with its modern fleet and strong liquidity position, positions it well to navigate the industry headwinds and capitalize on future opportunities.
Explore the complete 8-K earnings release (here) from Eagle Bulk Shipping Inc for further details.
This article first appeared on GuruFocus.
